The Business Council opposes A.9507-B Part GG, which would limit pharmacy mail order options for health insurance prescription plans. This bill will unquestionably result in increased pharmaceutical costs for New York’s consumers and employers, who provide benefits for their employees.
The use of volume discounts through mail order has been a proven method for health insurance plans to control pharmaceutical costs for their enrollees. Mail order pharmacy services are often less expensive than retail pharmacy and help to provide small businesses and families with affordable prescription drug access.
Mail order pharmaceuticals have proven to be an extremely helpful tool for customers whose access to brick and mortar pharmacies is limited for a variety of reasons. Mail order gives New Yorkers 24/7 access to pharmacists, free shipping and often lower out-of-pocket costs for consumers.
With the growth of prescription pharmaceutical use and a record number of insured New Yorkers, there is enough pharmaceutical business to ensure both a flourishing independent retail pharmacy business and a mail order business without resorting to protectionist legislation meant to pick winners and losers. Mail order pharmacies have not put independent pharmacies at risk. Rather, the two have shared in the overall growth of pharmacy expenditures.
This legislation would reduce competition and raise prices for consumers and employers alike, without delivering any added benefit to the public. For all these reasons, the Business Council opposes A.9507-B Part GG.